Ratio Analysis for RUCHI SOYA INDUSTRIES

Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY18, from 0.6x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at -5.4x during FY18, from -0.8x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 122.3% during FY18, from -146.5% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 112.7% during FY18, from -76.9% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -61.9% during FY18, from -3.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.